SHB and WB signed an Agreement for guaranteeing the Green Climate Fund
08:51 | 13/12/2021
|The World Bank and SHB signed a contract to guarantee the Green Climate Fund within the framework of the Project on Promoting Energy Saving in Industries in Vietnam.|
The value of the project "Promoting energy economy in industries of Vietnam" is 86.3 million USD including 11.3 million USD for implementing management and operation of GCF, sharing risks and technical support, strengthening the ability for the State management agencies, commercial banks participating in the project, industrial enterprises and energy service companies, and 75 million USD for guaranteeing loans to invest in the energy economy. The project should contribute to supporting the Government to achieve the National goals on energy economy, ensuring energy security, reducing greenhouse gas emissions, coping with climate change…
SHB participates in the project as a bank, providing credit to the enterprises with the investment projects in the energy economy to access the Risk Sharing Fund with 75 million USD funded by GCF and WB.
The risk-sharing model of the RSF Fund managed by SHB is a very new model in the world and the first time implemented in Vietnam. This will be a promising solution for the future of energy efficiency projects, particularly and energy security, generally in Vietnam, helping enterprises to receive many opportunities to be funded from the commercial banks to bravely research and invest in technological innovation, improving energy efficiency during the production process.
Speaking at the signing ceremony, Ms. Carolyn Turk - World Bank Vietnam Director said: “Promoting energy economy is a dominant solution with the lowest costs to achieve multiple goals at once: Ensuring energy security, combating pollution and reducing greenhouse gas emissions, at the same time improving the competitiveness of enterprises. In the context of public finance limit for energy, the risk-sharing fund is an innovative financial instrument for mobilizing finance from the private sector to invest in increasing energy economy solutions in the industrial sector”.
Ms. Ngo Thu Ha, SHB Deputy General Director shared: “We commit to reserve and prepare the best conditions to deploy efficiently project, cope with the relevant regulations, together with the organization in charge successfully implement the project. SHB trusts and hopes that in coming time WB and Vietnamese Government should make many efficient activities, programs and projects for promoting strong and sustainable development of the energy economy program, particularly and industrial green energy in Vietnam, generally”
SHB would like to strive for maintaining a top position among the private commercial joint-stock banks in terms of green credit
By the end of 2020, SHB was one of the private joint-stock commercial banks with outstanding loans for large green projects throughout the banking system. SHB has always actively and proactively approached green capital sources of international financial institutions (WB, ADB, KfW, JICA...), considered issuing green bonds, etc. to finance the projects for infrastructure construction in Vietnam, especially for the green energy projects.
With that advantage, SHB has brought many outstanding benefits for the investors of green projects such as preferential loan terms and low-interest rates. SHB also focused on helping customers raise awareness about green economic activities, especially in compliance with the requirements for environmental impact assessment of projects applying for loans. For foreign-funded projects, the SHB participates in providing technical safe consultancy, training on requirements and meeting the standard requirements of E&S sponsors.
With many practical solutions, SHB was honored to receive many awards from the prestigious domestic and international organizations as: "Typical Bank for Green Credit 2020", “Bank with the Best Initiative for managing Covid-19 Pandemic in 2021”, "Bank of Social Responsibility - Green Bank 2021"...
The World Bank is one of the largest donors in Vietnam's energy industry. In recent years, WB provided a large amount of ODA and grants to the technical assistance, funding the clean energy projects including energy efficiency and renewable energy, energy infrastructure projects as the power transmission, distribution and rural electrification